3 housing-market stocks with room to grow despite high mortgage rates

The housing market in the U.S. continues to face headwinds as high mortgage rates, rising material costs and limited land availability keep prospective buyers at bay. Yet for discerning investors, these challenges have also created opportunities, particularly in the shares of companies with strong fundamentals that are well-positioned to thrive despite the housing undersupply.

Elevated mortgage rates have kept many prospective buyers on the sidelines, exacerbating the housing affordability crisis. More than 75% of respondents say the U.S. faces a housing-affordability challenge even after some stabilization in the broader economy, according to a recent survey by the National Association of Home Builders (NAHB).